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  • If Cap and Trade Doesn’t Work, Obama will Make it Work

    All the talk in Washington is surrounding a government health insurance plan, but there’s a little discussed insurance plan in the Boxer-Kerry cap and trade bill that’s worth some attention. The Senate version of the cap and trade bill includes a section that grants the President the authority to “direct relevant federal agencies” to impose additional greenhouse gas regulations. Senators David Vitter (R-LA) and John Barrasso (R-WY) have been working assiduously to uncover the true costs of cap and trade legislation.

    Greenhouse gas concentrations are measured in parts per million (ppm). Many global warming alarmists believe that upper limit on carbon dioxide and other greenhouse gas emissions in order to prevent catastrophic harm is 450 parts per million (ppm). Once we reach that threshold, water will rise to the torch of the Statue of Liberty, California will be an island, the polar ice caps will cease to exist and island nations will no longer be nations but submerged pieces of land. To put the numbers in some perspective, Sharon Begley notes in her Newsweek column that the carbon dioxide concentration is currently at 386 ppm; we were at 280ppm before the Industrial Revolution. If you include the carbon dioxide equivalent greenhouse gases, we’ve arguably reached the 450 ppm threshold. The Boxer-Kerry legislation says that if global greenhouse gas concentrations exceed 450 parts per million of carbon dioxide equivalent:

    Sec. 707 Not later than July 1, 2015, and every 4 years thereafter–
    `(1) the President shall direct relevant Federal agencies to use existing statutory authority to take appropriate actions identified in the reports submitted under sections 705 and 706 and to address any shortfalls identified in such reports.

    The passed House version, Waxman-Markey, also contains language that grant the administration similar authority. So, for those who thought cap and trade legislation would preempt costly regulations, think again. This is more or less an insurance policy that would allow EPA officials regulate just about every aspect of the market and guarantees there will be economic pain. Even EPA Administrator Lisa Jackson said, “We get further faster without top-down regulation.” Added regulations on top of cap and trade would be a bureaucratic nightmare that could delay economic projects and tie them up in litigation and result in hundreds of thousands, if not millions, of dollars in compliance costs.

    If we’ve learned anything from the health care debate, it’s that companies shouldn’t trust government promises that their bottom lines will not be affected. Proponents of a government-run option made repeated claims that private businesses would remain competitive but Karen Ignagni, president of America’s Health Insurance Plans, recently sent a letter to the White House and Speaker of the House Nancy Pelosi saying the plan “would bankrupt hospitals, dismantle employer coverage.

    The same can be said for cap and trade. In order to garner business support, Members promised generous allowance revenue handouts for various industries and special interests. President Obama originally called for an auction of the emission allowances, forcing companies to bid on the right to emit. Businesses, knowing very well this would impose a severe cost on their bottom line, sent their lobbyists to Washington to protect them. And it worked – at least they thought it did. Sections 705-707 of the Boxer-Kerry cap and trade bill would pile costly regulations on these allegedly protected companies. And these costs would be passed onto the consumer, making the bill all that more painful.

    Even if we are only at 386 ppm, the way China and other developing countries are growing and refusing to cap greenhouse gas emissions, global greenhouse gas concentrations could reach 450 ppm in no time. George Will writes, “On Oct. 21, China, the world’s leading emitter of greenhouse gases, and India, which ranks fourth — together they account for 26 percent of emissions — jointly agreed: They, with their combined one-third of the world’s population, will not play in what increasingly resembles a global game of climate-change charades. Neither nation is interested in jeopardizing its economic growth with emissions caps of a sort that never impeded the growth of the developed nations that now praise them.”

    With the rate of growth of global greenhouse gas emissions, cap and trade paired with top down regulation assures economic pain for every part of the economy, especially the American energy consumer, with nothing to show for it.

    Posted in Energy [slideshow_deploy]

    19 Responses to If Cap and Trade Doesn’t Work, Obama will Make it Work

    1. Freedom of Speech, TX says:

      There is something to show for this – DEBT and the decline of our standard of living.

      After all, we should not be better off than other Global Comrades.

      Instead of democracy and freedom creating opportunities for the “oppressed” to rise, it is important for the middle and upper middle class to “come down a few notches”. It is evening out the playing field or as our illustrious leader has said, Redistributing the Wealth.

      It does not matter IF that is not the intent. The end result will be the same.

    2. Bobbie Jay says:

      Good one, Nick. I like your last line especially! Yours too, Freedom of Speech.

      It's just heartbreaking, there is no intelligence, honesty and integrity where once was, in the majority of American leadership. THEY still have the FREEDOM to "CHANGE."

    3. TheNinthAmendment, A says:

      'The numbering of certain Rights in the constitution Shall Not be construed to deny OR disparage other Rights retained by the people.', The Ninth Amendment, Bill of Rights, U.S. Constitution. And my question or comment is: Is not this 'cripple&TAX' LIE, just an illusion to distract us from the cripple&TAXs' Actual purpose; another way to install a 'Value Added Tax' into our economy? Me thinks it IS.

      (And any "value added tax" is a LIE itself, also.)

    4. Pingback: Charlie Chatter » Blog Archive » Daily Rundown, 11-11-09 - Be informed. Be very informed.

    5. John Roane Sarasota says:

      Not to worry President Obama will soon hold a job seminar which will rescue the unemployed and make cap and trade worthwhile. One wave of his hand and the water will part and green jobs shall spring from the earth.

      There is little left of our US Constitution and Cap and Trade will do the rest. It will cap the constitution and trade our freedom for world government.

      May God have mercy on our souls.

    6. Thomasville GA says:

      Cap and trade will not do enough to make it worth while.I BELIEVE IT IS ONLY A SCHEME TO COLLECT MORE TAXES. If this terrable scheme is allowed to go further we can expect all plant life to suffer. Plants live on CO2.

    7. Thomasville GA says:

      Cap and trade is a terrable boondogle designed to colect taxes. If this is alowed to happen all plant life will suffer. Plants need the carbon to grow. I want the theving money grubbers in washington out of my life.

    8. Tim Az says:

      This is about making everyone equally miserable and deminished. Simply put this is trickle up poverty.

      How's that hope and change working out for you?

    9. Da Dog says:

      The crystal ball is clearing. Its prediction is that there will be a massive tax revolt very soon. Since there is nowhere to flee like those in New York and California, it will be the only way. The scale has tipped beyond the point at which it is beneficial to be a producer. Those of us who pay taxes are already forfeiting 50-75% of what we earn as it is. There's not a whole lot left to take. Who then will fund the deadbeats and government elite?

    10. Jeanne Stotler, wood says:

      IMPEACH and RECALL, that's the answer, the first shots were fired Nov. 3rd, the Revolution has started, Remember to support our cause in 2010 ans 2012. Also if you belong to AARP, do as I did, I quit and I told them WHY. Less than 15% of MD's belong to AMA so it doesn't speak for the Doc's of this country, I have a cousin who is a heart surgeon and my own MD, they don't belong and do not support the Health care bill.

    11. Pat Smith says:

      My Daughter is a Doctor with 3 others, none of them belong to the AMA. My parents called AARP and canceled their membership. I never belonged. I asked my Mom why she ever belong in the first place and she said because they give you discounts on travel. I said Mom you don't travel. There should be laws against them taking advantage of the elderly. When they called to cancel my Dad said don't you want to know why we are cancelling, the guy said I'll listen to you but clearly they don't really care about seniors.

    12. Bob, Portland, OR says:

      Follow the money, "Big Al" Gwore, G Soros.

      I am going to get that Columbia U professor to slap some sense into both of them.

      Sucker punch them.

    13. Matt, Oklahoma says:

      It sounds like the conversation has strayed from AGW, climate change, global warming, whatever they are calling it today. But, I love the comments. Thomas Jefferson warned us over 200 years ago of this scenario. The power rests in the states. Use your state legislatures. Do away with the federal income tax and you cripple the federal government. Remember, the government has no money. It is all taxpayer money (or money they print) don't get me started on that one. Thanks for killing the dollar along with our economy.

    14. Matt, Oklahoma says:

      Here is some math, and it is all based on the "models" that the IPCC is so proud of. According to their model CO2 conc. will be 836 ppm in 2100. 368 ppm in 2000. Increase of 468 ppm. They claim a warming of 3.4 C. That's 140 ppm/C. Multiply that by CO2 emmissions per ppm (14,150 million tons). So, you need to cut 2 trillion (10^12) tons of CO2 to stall 1C of cooling. Waxman/Markey calls for 5 billion tons CO2 cut/year. So, to prevent 1C of warming, it would take 400 years(2 trillion/5 billion). And to stop the 3.4C (100 year warming), it would take 1360 years X180 billion/year that it costs and you get a grand total of 250 trillion dollars. Doesn't make sense to me, but I'm not in the position to make millions of dollars from it either. Source: SPPI calculations.

    15. Mike in Missouri says:

      My folks wrote a scathing letter to AARP canceling their membership and enclosed their cutup membership cards to make sure AARP got the message! Better discounts can be found on travel elsewhere — and the organization doesn't truly represent the views of those it purportedly claims.

      I think our country's retirees have had enough of Washington — and government in general. The misguided addition of a Cap & Tax in any form will further erode their life-long savings and diminish quality of life even in retirement.

    16. susan castile Portla says:

      There needs to be impeachment proceedings brought up agains't president obama. Critical thinking americans know exactly what is going on. there is no spin. he has an agenda, and he is implementing it. his actions are un-constitutional.

    17. Duncan Bishop says:

      As the libs contine to divide and conquer Americans, distracting us with all this (Healthcare, Cap & Trade, etc.), garbage, BO stalls on our war effort. Does anyone else think that he is doing to us (US) what Reagan did to the former USSR? BO is spending us into bankruptcy (like Reagan did to USSR with Star Wars) so when we do need to defend ourselves from attack, there will be no resources to do so. Remember Nathan Hale's dying quote…

    18. Boyce Robbins Easley says:

      Since socialists and Communists cannot increase productivity or economic growth, the only way to redistribute the wealth is to lower the living standards of the upper middle class. This will, in time, lower the living standards of all who do not belong to the priviliged classes in the government, media, academia, investment banking, etc. The "limousine liberals" and "trust-fund radicals" will drive through the blight they create in their chauffeur driven limousines or just fly over the disaster they have created on their way to their gated communities and other havens where they do not have to rub elbows with the great mass of Americans.

    19. Remus, Bartlett IL says:

      It is time to stop this madness! We need to unite and defeat this evil being before our country is destroyed!

      Cap and Tax is just another nail in our coffin.

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